Power Cost Adjustment (PCA)
Sedgwick County Electric Cooperative purchases power each month from its power supplier – Kansas Electric Power Cooperative, Inc. (KEPCo) at a wholesale cost to meet the electric energy needs of its members. This cost of wholesale power is a significant cost of providing electric service to the member.
The PCA provides for a monthly adjustment dependent on any differences in the average cost from the base cost of wholesale power.
When the kilowatt hour cost to the cooperative is lower than the base cost, there is a credit to the bill. When the kilowatt hour cost to the cooperative is higher than the base cost, there is an increase to the bill.
Wholesale power costs fluctuate for a host of reasons. In the hot summer months, the excess demand for energy requires KEPCo to purchase power from more expensive sources, which includes additional generation costs.
However, members can help the cooperative and in turn, themselves by curtailing their usage during the peak hours of the hot days of summer (approx. 3-8 p.m.).
Energy Cost Adjustment (ECA)*
Schedule ECA-3 (2018), Replacing Schedule ECA-2 (1986)
Computation Formula
The rates for energy to which this adjustment is applicable shall be increased or decreased by .001₵ per kilowatt-hour (kWh) for each .001₵ (or major fraction thereof) increase or decrease in the aggregate cost (excluding Board approved credits) of energy per kWh as computed by the following formula:
(C – b) = Adjustment
Where:
C = The actual total purchased power cost in ₵ / kWh purchased for the latest month for which data is available
B= Actual purchased power cost in ₵ / kWh purchased established during the base period. The base period is defined as the period from which data was taken in establishing the base rates to which the energy adjustment will be applied. b = 9.12₵ / kWh.
Frequency of Computation
The new adjustment amount shall be computed no more frequently than once each month.
Settlement Provision
Subsequent to the effect date of this clause, the company shall maintain a continuing monthly comparison of the actual increased (decreased) cost of purchased power as shown on the books and records of the company and the increased (decreased) dollar cost of purchased power recovered from consumers.
For each monthly billing period, the cumulative difference of the previous monthly comparisons under consideration shall be added to the “Actual Cost Remainder” described below to produce a cumulative balance. The “Settlement Factor” shall then be calculated by dividing the cumulative balance as of that date by the total number of kWh deliveries subject to adjustment expected during the next monthly period ending on that date. This amount shall be rounded to the nearest .001 ₵ / kWh to determine the increase or decrease, which should be made to the energy cost adjustment. This “Settlement Factor” shall remain in effect until superseded by a subsequent “Settlement Factor” calculated according to this provision.
The amounts collected or returned under this “Settlement Factor” for each monthly period shall be compared with the cumulative balance, as described above. Any resulting overage or underage, which shall be known as the “Actual Cost Remainder”, shall be applied to the next subsequent “Settlement Factor”.
Amended May 22, 2017
Effective May 1, 2018
*Power Cost Adjustment and Energy Cost Adjustment are the same factors. PCA is listed on member bills, while ECA is what the co-op uses for rate classification.
